Chapter two no bankruptcy guarantee

On the 20th of October credit intelligence subsidiary chapter two announced the launch of their "debt management APP". In the announcement they stated that there would be "no insolvency event or default to their credit file". I found this statement particularly interesting as chapter two is a mediator between the debtor and the creditors, they are not the creditors thus meaning they do not have control over a creditor wanting to start legal proceeding's.

Looking at the senate inquiry into Credit and financial services targeted at people in financial hardship I found this information on debt management firms:



In the part I have highlighted you can see how a company called "nobankruptcy" clearly mislead consumers. As they couldn't guarantee no insolvency event or default. the website for that company no longer exists and I presume that is the same of the company.

So how can chapter two guarantee this, and if they can't will this mean ASIC will be knocking soon?

Link to report

https://www.aph.gov.au/DocumentStore.ashx?id=9de4bfb8-5bc3-48a9-98af-b7a6592b5903&subId=663157

Link to chapter two announcement
https://www.ci1.com.au/investors/announcements/business-update-launch-of-debt-management-app-in-australia-211020/viewdocument

Link to nobankruptcy website
nobankruptcy.com.au